The global currency market experienced significant fluctuations following U.S. President Donald Trump’s declaration of a 25% tariff on goods from Japan and South Korea, intensifying his trade war strategy. As markets sought stability, the yen weakened, enabling the U.S. dollar to rise by 0.3% against it.
Contrastingly, the Australian dollar rallied after the central bank defied market expectations by maintaining its cash rate at 3.85%. The euro also reached a one-year high against the yen, buoyed by optimism that the European Union could secure exemptions from U.S. tariffs.
Amidst this financial turbulence, the market braces for further developments, with the Reserve Bank of Australia’s upcoming decisions closely watched. Investors remain wary given the prevailing global economic uncertainties, particularly those stemming from tariff tensions.
